Universal Journal of Accounting and Finance Vol. 9(6), pp. 1495 - 1502
DOI: 10.13189/ujaf.2021.090626
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Is the Market Efficiency Hypothesis Applicable in the Czech Republic – FOREX Case

Petr Makovský ^*
Masaryk Institute of Advanced Studies, Czech Technical University in Prague, Czech Republic

ABSTRACT

The Efficient Market Hypothesis (EMH) is the generalization of the so called perfect competition for the financial markets. Sometimes the financial markets are assumed to be the markets most similar to the perfect competition. So, every test of the EMH theory is the test about the perfect competition approach and then its conclusions are about the market mechanisms and potential regulation and policy. Even though, discussions about the financial capital regulations, free movements of financial capital and taxing are widespread, not only in economic theory scientific conferences, but anywhere. The FOREX market is the financial market, in which there is the highest amount of trading, so that we assume the feature analyzed be the most visible. More in the Czech Republic there is permanent question about the pros and cons of the national currency. The EHM theory concluded remarks also influence the discussion. The problem is not so simple. The conclusion is not about the purity of the efficient or inefficient financial markets. The conclusion must be about the level of the market efficiency, which is moreover variable in the different time periods. More we analyzed the effects of the great financial crisis in 2008.

KEYWORDS
Time Series Analysis, Martingale Stochastic Process, Cointegration, Perfect Competition

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Petr Makovský , "Is the Market Efficiency Hypothesis Applicable in the Czech Republic – FOREX Case," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1495 - 1502, 2021. DOI: 10.13189/ujaf.2021.090626.

(b). APA Format:
Petr Makovský (2021). Is the Market Efficiency Hypothesis Applicable in the Czech Republic – FOREX Case. Universal Journal of Accounting and Finance, 9(6), 1495 - 1502. DOI: 10.13189/ujaf.2021.090626.